Will a kitchen remodel or enlargement increase the value of my home?

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Will a kitchen remodel or enlargement increase the value of my home?

A kitchen remodel or enlargement should increase the value of your home somewhat. The difficulty is in trying to predict how much it will increase the value.

Traditionally kitchen and bathrooms have been critical in home valuation and sales. The recent trend has clearly been toward larger kitchens that accommodate the life of the family. The housing market decline and the drop in home values is impacting the value of kitchen remodeling.

Current cost to value estimates are much lower than they have been over the past few years. It is reasonable to think that a kitchen remodel will increase the value of your home, but not by as much as you will spend on the remodel. In the early months of 2010, a midrange kitchen remodel would show a larger return on investment than a major upscale remodel (72 – 78% vs. 63%).

If the trend continues toward smaller houses and simpler lifestyles, we can only wait to see what the new home buyer will want in a kitchen.